As of now, customers can shop on Sephora’s website with a new payment plan option, which allows them to pay with no interest in 4 equal payments. There will be no lower limit (or upper) for orders as the goal is to attract and retain Gen-Z and young millennial shoppers.
And, along the way, to also help customers who are struggling currently with cash.
The beauty retailer is known for providing an outstanding shopping experience. And now they took it to the next level by teaming up with Klarna, the Swedish banking company, to create an installment option available in the U.S.
“Ease and convenience play an instrumental role in the Sephora client experience, and as a digital leader, we have always adapted to our beauty community’s evolving needs and their shopping journey,” said Kim Stromberg, VP and G.M. of e-Commerce at Sephora.
“With Klarna, we can continue to provide our clients the seamless shopping experience they know and love while increasing flexibility in our checkout offerings,” she added.
Promotions along the lines of buy now, pay later are a great way to show your support to customers when so many are jobless. Also, and perhaps more so, brands are treating these services now as a marketing tool that attracts younger, price-sensitive customers.
“We had been monitoring the market and were aware that many Gen-Z and young millennial customers don’t own credit cards and only use debit cards. It’s critical for our Sephora.com strategy to make checkout easy and as seamless as possible, now more than ever,” said Stromberg.
H&M, for example, is the leader in this phenomenon who’s very considerate of its customers’ current situation and offers a similar shopping experience.
A brand new one is from the global fashion e-tailer, boohoo, who recently expanded installment payment options to customers in Canada.
“We’ve seen strong results from offering our customers an installment payment options in other markets, including the U.S. and Europe,” said Justin Lodge, International Director of boohoo group. Therefore, extending the payment plan to their customer base in the Great White North.
And it’s quite likely that many other brands will shortly adopt this payment plan in one way or another.
As for more ideas on how to treat your customers right, here are the final two timely ones from Sephora:
During the recent National Nurses Week, they gave away $100 Sephora gift cards to nurses who have been working tirelessly during COVID-19.
Sephora’s checking off the “giving discounts” box too with their recent Spring sale that had quarantined shoppers with numerous Zoom calls to attend very excited.
We hope there’s even more to come.